So after a full year going by since the bankruptcy, I have to say it's been really nice to not have those big bills hanging over our heads. We have gotten many offers in the mail for credit cards and have thrown each of them away without even looking. We know that those offers will have high interest rates and some even have annual fees involved.
Also, those are offers, and it does not mean that you will have it approved should you apply.
You have to remember that each time you apply for credit on something, your credit score gets dinged on top of that.
That being said, we know we have about 7 years before the bankruptcy falls off although it will never really go away, it is there forever. But after a time you can show that you can be responsible and pay your bills and be on time and not have any issues. Not to say you weren't before especially if you were in my position where I unexpectedly lost my high paying job.
Last year in March, we went down to Hammond Tractor to see if we could apply to get a nice tractor with a snowblower on it and of course it came back with a no. I knew we would more than likely be laughed at, but, at least we would know and tried. So this year, we went back down there to talk to them to find out exactly how much it was going to be for what we wanted. This way, we would know then how much we needed to save.
We also were not putting anything down on the tractor last year whereas this year, once we sell the UTV that we were able to get with the tax return, we can look at putting that money down and asking if they would allow us to finance the rest. If the answer is still no, then we will just save up more money and try again next year. Keep doing that until we either have the money to pay it in full or until we are able to finance it. Once a year is not bad as far as dings on the credit report.
In many ways, not being able to finance anything is really great as it prevents you from getting into trouble with payments. We are sitting in a better position financially as well in not owing anyone anything beyond the Jeep and the house. The Jeep being paid for as of next year, if not sooner!
So that's all really great! The downside to it all is knowing despite your great credit scores, you are still very limited as to anyone wanting to lend you anything. I get that tho', I do, despite the reasons why we had to.
The other thing that was cool was not everything was included in the bankruptcy. There are a few accounts that were not listed and ones we had paid off and had zero balances but they are still open accounts and as such, we have been able to use them. I didn't know they would still be active and stumbled upon that nugget of wonderful last year. Because they were not included in the bankruptcy, they are still open accounts despite the zero balance.
So why would we use them? To re-establish credit! And without having to have high fees either, we are keeping the same terms as we had before with that company and yet, by keeping a low balance and paying on time, that all helps you to establish your credit again. So that was a bonus. Accounts like Pier1 is great to do that. They are a store I don't shop in too often nor do I get things from there hardly at all, and so easy to go shop a bit, pick up a few things and charge it and then make payments on time and keep the balance below 1/3 or a 1/4 of the total credit available and that keeps your credit scores up and not effected at all and in fact, actually helped by you being and showing responsibility. Love it!
Dell is another company that I still have a business acct with. I thought it was closed but nope. I don't use them too often really at all. Just when a computer takes a nose dive which none have as of yet in a long while. And they are ones that we always paid off before the interest free time period expired so then you don't have to pay all that back interest that they do keep track of and will bill you for it you don't pay off the item during the promotional period. It's a great deal but you have to be diligent and timely.
The only other thing about the bankruptcy is that it would make it a lot harder for a bank to want to allow us a loan or mortgage so moving is not an option for a few more years yet. Not just due to that but also the money issue and whatnot. Lots of factors into that. Not that we want to move at this time but it may come down to it that we may just want to do so later on in life. Time will tell there.
It's been an awesome feeling to not have those bills over our head tho'. It gives you a sense of freedom and gave us more wiggle room to be able to focus on the renovations and changes we want to do with the house and garage etc. We will be going slower since I don't have that job with the crazy silly money but at least it is all paid for! :)
Moving forward, you do need to be careful about what credit cards you choose to accept and how you spend your money. You have to be responsible and can't fall into the same issue you may have had before, can't live beyond your means. I can hear my dad in a lot of this. Cash over the barrel and he only did time payments, something they don't really have anymore unless it's a promotional item like Dell or such, that's as close to that as you will get aside from the car payments.
So now things have settled and it feels pretty good. I think back on the kind of money I had been making and how so much was thrown away to bills. Crazy for if I had that now, I would be a lot better with it and of course now, it would mean so much more since I would save it and put it to things we really need. It's funny because you hear of how so many people lose their minds when they win the lotto or such. I know I wouldn't as I've learned that lesson earlier. It is so easy tho' to slip into it and be silly with silly money. Why so many people hire someone to help them manage it better, keep a tight rein on themselves. I also like the idea of taking time before you jump to a purchase too. Really think about it if that is what you want or need. Helps prevent the impulse buy.
Anyway, this whole ordeal has been mostly a good experience. Lots of bumps and whatnot on the road but overall, it feels good to be free and clear of the debt. I hope if you end up in a similar situation, you will have the same good results! Start again, a lot wiser! :)
